Follow the latest in economic news and developments about the Arab transition countries.
Egypt’s poverty rate rises to 26 percent in 2012-13: CAPMAS
Egypt’s poverty rate has increased, reaching 26.3 percent for the year 2012-13 compared with 25.2 percent in 2010-11, the state-run statistics agency CAPMAS reported.A CAPMAS report stated that the domestic poverty line stands at an annual EGP 3,920 ($569) per person. However, the country’s extreme poverty rate shed 0.4 percent from 2010-11 to record 4.4 percent in 2012-13. The extreme poverty line stands at an annual EGP 3,570 ($518) per person. Poverty remains predominant in rural areas compared to urban areas. The highest rates in the country are in two southern Egyptian governorates, Assiut and Qena, at 60 and 58 percent respectively. [Ahram]
A senior official at the Ministry of Finance said Saudi Arabia would offer a new aid package to Egypt worth $5 billion. “Negotiations over this package have lasted for nearly one month. It includes grants, a deposit in the Central Bank of Egypt and oil products”. The official said that the package also includes a non-refundable grant of $1 billion, adding that additional details will be announced soon. [Egypt Independent]
Libya’s Prime Minister Ali Zeidan said last week his government will be unable to pay public salaries and may have to seek loans if armed militias blockading oilfields and ports continue to choke off crude shipments. Militias, tribesman and ethnic minorities have seized oilfields and ports to make demands, drying up the main cash flow for the budget, much of which is spent on state subsidies to stave off popular discontent or to buy the loyalty of the militias. [Reuters]
An ongoing economic crisis coupled with pressure for radical structural reform from international creditors, Morocco has taken the path of rigor, in some cases cutting ministry budgets by more than 50 percent in the coming fiscal year. In a seemingly disconcerting move in a country plagued by chronic youth unemployment, the government has slashed the employment ministry budget by 61.47 percent over 2013, from 903 million dirhams to just 348 million dirhams. Some analysts however questioned the wisdom of slashing budgets at income-generating ministries such as tourism, which has been doing a great job of promoting the country as an international destination. [ANSAmed]
Tunisian Central Bank raises concern about economy
The Tunisian Central Bank has warned against the danger of continued pressure on the internal and external financial situation of the country and their negative impact on growth and job creation in the coming years. In a communiqué issued on Saturday, the Bank said the present situation demanded that everybody worked for the political and security stability in the country. It called for urgent measures to manage the external and general financial deficits as well as the rise in prices. The Central Bank also called for an acceleration of structural reforms regarding the financial and investment sectors as per a medium term development plan that would give a clear vision to economic operators and foreign partners. [African Manager]
The Tunisian Central Bank has warned against the danger of continued pressure on the internal and external financial situation of the country and their negative impact on growth and job creation in the coming years. In a communiqué issued on Saturday, the Bank said the present situation demanded that everybody worked for the political and security stability in the country. It called for urgent measures to manage the external and general financial deficits as well as the rise in prices. The Central Bank also called for an acceleration of structural reforms regarding the financial and investment sectors as per a medium term development plan that would give a clear vision to economic operators and foreign partners. [African Manager]
Also of Interest:
Kuwait Fund delegation in Cairo to discuss supporting Egypt | Egypt Independent
Egypt Central Bank returns $500 million deposit to Qatar | Egypt Independent
Egyptian Minister of Petroleum to Emirates pushing for additional oil aid | Youm7
Egypt’s new constitution will stipulate progressive taxation | Ahram
World Bank to finance new projects in Egypt | Ahram
Saudi has $4.3 billion failing projects in Egypt | Zawya DJ
Tourist arrivals drop 69.7 percent in September: CAPMAS | DNE
Egypt’s Islamic bonds controversy resurfaces | Ahram
Russia to increase investments in Egypt within coming stage: Official | MENA
Libya and Jordan agree to establish “strategic” relationship | Libya Herald
Libya sends back 360 Egyptians arriving with forged visas | Reuters
Morocco and Eurobonds: Just can’t get enough | FT
Morocco takes new approach to youth jobs | Magharebia
Moroccan bank, Citibank and OPIC signed memo of Understanding for support to SME’s | MAP
Morocco takes part in Deauville partnership meeting in New York | MAP
Tunisian unemployed graduates protest public hiring policies | Tunisia Live
Tunisia: China donates €18 euros for new projects | ANSAMed
Arab Monetary Fund grants Tunisia $147.4 million loan | TAP
Foreign flows to North Africa evaporate on shocks at home and abroad | Reuters